Nearly half of Canadians are at $ 200 for not being able to meet their monthly financial obligations. Is this your case? You are not alone. If you are already tightening your belt, it can be difficult to cope with unexpected expenses.
Your car will not start anymore. How will you pay for repairs?
If you have enough money aside, you can use your emergency funds. However, if you are like most Canadians, the rising cost of living prevents you from saving for emergencies. There is of course your credit card, but it is not the ideal solution if you are already trying to pay the balance. Your credit limit may not be enough to cover your expenses. So, what to do? You need your car to get to work! In this case, a personal payday loan may be the right solution to help you pay for this urgent expense.
I need money now. Is it not faster to use my credit card?
It all depends on the loan. Some requests for personal payday loans can be processed quickly. At Fairstone Financial, you can get your loan the same day you apply. Even if it’s tempting to use your credit card, you could end up in a debt cycle. Unlike a personal payday loan (or an installment loan), your credit card balance is a revolving-type debt, that is, there is no repayment schedule, and no date end to which the debt must be paid.
Our tip: Use your credit card only if you are sure you will have the money to pay off your balance by the time you receive your bill.
For what types of emergencies can I use a personal payday loan?
Most lenders will allow you to take out a loan to cover almost all types of unforeseen expenses. You only have to meet their borrowing requirements, such as having proof of income and being able to make the loan payments. Here are some of the common reasons clients ask for an emergency loan at Fairstone Financial:
- Home repairs
- Broken appliances
- Veterinary fees
- Medical bills
- Unexpected movements
Another reason to use a personal payday loan? Some people first use their credit card to pay for unexpected expenses, and later decide to consolidate their credit card balances when it becomes unmanageable. Using a personal payday loan to consolidate your debts allows you to consolidate multiple bills into one easy payment, allowing you to repay your debt faster and save on interest charges.
What is the best way to use a personal payday loan for emergency?
Your lender should work with you to customize your loan to suit your needs. Here are some things to consider when you take out an emergency loan:
Loan Term: A shorter term means higher payments, but reduces interest costs during the period of your loan. On the other hand, a longer loan term will allow you to take advantage of more affordable payments and a more flexible budget. However, you will pay more interest over time.
The type of loan: if you are an owner, you could guarantee your loan with the value of your home. A secured loan application is a little longer to process, but you will benefit from a lower interest rate and more affordable payments.
Prepayment penalties: In some cases, you must pay a penalty if you repay your loan before the end of its term. If you want to be able to repay your loan at any time (and eliminate your debt faster), look for a lender that does not impose an early payment penalty on its loans.
Frequency of Payments: once a fortnightly payments allow you to repay your debt faster and save on interest, since you make two more payments a year than by paying twice a month. Payments twice a month are more predictable, since your loan payments are the same each month. Finally, monthly payments can help you simplify your payment schedule.
Are you looking for a personal payday loan to pay for an unexpected expense?
Fairstone Financial offers emergency loans of up to $ 30,000. Find out if a Fairstone Financial loan is the right solution for you through online loan submission.